Sino-Russia trade looks promising against headwinds

Despite headwinds from an uncertain global climate, trade between China and Russia is likely to continue to grow in 2015 thanks to fresh opportunities and steadfast political will.

Russia grappled with unexpected economic hardship last year triggered by Western sanctions and a crude oil price plunge, with its trade with major economic partners including the European Union tumbling.

Bucking the trend, China-Russia trade remained robust due to strengthening ties between the two sides. Bilateral trade rose 6.8 percent from the previous year to a record high of $95.28 billion in 2014.

Despite the eye-catching figure, worries linger as the impact of the sanctions may worsen during the year amid sluggish global trade, while China is confronted with its own looming pressures, casting a shadow over the prospects.

Natalia V. Akindinova, professor at the Higher School of Economics, said Russia's economic outlook is grim this year as falling resident incomes will probably dampen consumption and lead to shrinking imports.

Chinese businessmen in Russia have also felt the chill from a ruble slump since the end of last year as dropping shipments and tourism in border ports including Heihe and Manzhouli prompted an even colder winter.

However, analysts have predicted a promising outlook based on unchanged favorable conditions, such as supplementary economies and keen enterprises, as well as new opportunities.

Russian trade commissioner to China Aleksey Gruzdev said Russia could find oriental solutions for its economic problems.

"Russia needs to strengthen industrial and agricultural cooperation overseas, introduce high-tech products, bring in investment and diversify financing means, all of which can be improved via collaboration with China," he said.

Heilongjiang Province, China's nearest region to Russia, plans to build 20 model farms to provide vegetables for Russia, a boon to lagging farm produce trade between the two sides.

The province contributed nearly a quarter of total trade between the two countries in 2014.

China and Russia have had a long history of cooperation in energy, industry, investment and trade settlement, and new opportunities from cross-border e-commerce and the "Belt and Road" initiatives will bring a fresh breeze into the economic ties.

The top leaderships are also confident in the future. Chinese President Xi Jinping and Russian President Vladimir Putin vowed last year to boost the trade volume to $100 billion in 2015 and further double the figure in another five years.

The trade goals will definitely be attained through advancing practical cooperation between the two countries, Yang Chuang of China Foreign Affairs University said.

China remained Russia's largest trade partner for a fifth year in 2014, while Russia is China's ninth-largest trade partner.